A RISK ASSESSMENT MODEL FOR SUPPLY CHAINS

Year 2018, , 122 - 125, 01.09.2018

Sena Kubra Canbakis Melike Karabas Huseyin Selcuk Kilic , Sedef Koseoglu Ezgi Unal

https://doi.org/10.17261/Pressacademia.2018.866

Abstract

Purpose- This research proposes an integrated methodology to assess the risks in supply chains.

Methodology- Regarding the importance of risk management in supply chains, an integrated model including Failure Mode Effects Analysis (FMEA), Analytic Hierarchy Process (AHP) and Weighted Product (WP) is proposed. Within the proposed methodology, firstly the supply chain risks are determined by both benefiting from the literature and a survey among experts including academics and sector representatives. Afterwards, different from the classical FMEA approach, the three factors; detection, severity and occurrence are weighted via AHP. Then, the supply chain risks are prioritized based on these weighted factors and WP.

Findings- Prioritized sub-risks in supply chain and the most important sub-risk are obtained as a result of the proposed methodology.

Conclusion- The study provides a risk assessment methodology which is an important part of risk management process. It is planned to provide benefit both for the practitioners and academics focusing on risks in supply chains.

Keywords

Risk management, supply chain, FMEA, AHP, WP

References

• Aqlan, F., Lam, S. S. (2015). A fuzzy-based integrated framework for supply chain risk assessment. International Journal of Production Economics, 161, 54-63. doi:10.1016/j.ijpe.2014.11.013
• Aslani, R., Feili, H., Javanshir, H. (2014). A hybrid of fuzzy FMEA-AHP to determine factors affecting alternator failure causes. Management Science Letters, 4(9), 1981-1984.
• Chaudhuri, A., Mohanty, B. K., Singh, K. N. (2013). Supply chain risk assessment during new product development: a group decision making approach using numeric and linguistic data. International Journal of Production Research, 51(10), 2790-2804.
• Diabat, A., Govindan, K., Panicker, V. V. (2012). Supply chain risk management and its mitigation in a food industry. International Journal of Production Research, 50(11), 3039-3050.
• Hu, A. H., Hsu, C. W., Kuo, T. C., Wu, W. C. (2009). Risk evaluation of green components to hazardous substance using FMEA and FAHP. Expert Systems with Applications, 36(3), 7142-7147.
• Jaberidoost, M., Olfat, L., Hosseini, A., Kebriaeezadeh, A., Abdollahi, M., Alaeddini, M., Dinarvand, R. (2015). Pharmaceutical supply chain risk assessment in Iran using analytic hierarchy process (AHP) and simple additive weighting (SAW) methods. Journal of pharmaceutical policy and practice, 8(1), 9.
• Li, Z. P., Yee, Q. M. G., Tan, P. S., Lee, S. G. (2013, December). An extended risk matrix approach for supply chain risk assessment. In Industrial Engineering and Engineering Management (IEEM), 2013 IEEE International Conference on(pp. 1699-1704). IEEE.
• Liu, Z., Lai, M., Zhou, T., Zhou, Y. (2009, June). A supply chain risk assessment model based on multistage influence diagram. In Service Systems and Service Management, 2009. ICSSSM'09. 6th International Conference on (pp. 72-75). IEEE.
• Maheswaran, K., Loganathan, T. (2013). A novel approach for prioritization of failure modes in FMEA using MCDM. International Journal of Engineering Research and Applications, 3(4), 733-739.
• Manuj, I., Mentzer, J. T. (2008). Global supply chain risk management. Journal of business logistics, 29(1), 133-155.
• Özveri, O., Kabak, M. (2016). Çok kriterli karar verme tekniklerinin hata modu ve etkileri analizinde kullanımı. Muğla Sitki Koçman Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Ekonomi Ve Yönetim Araştirmalari Dergisi, 4(2).
• Palaniappan, P. K. (2014). Risk assessment and management in supply chain. Global Journal of Research in Engineering, 14(2).
• Punniyamoorthy, M., Thamaraiselvan, N., Manikandan, L. (2013). Assessment of supply chain risk: scale development and validation. Benchmarking: An International Journal, 20(1), 79-105.
• Soni, G., Kodali, R. (2013). A decision framework for assessment of risk associated with global supply chain. Journal of Modelling in Management, 8(1), 25-53.
• Su, C. T., Chou, C. J. (2008). A systematic methodology for the creation of Six Sigma projects: a case study of semiconductor foundry. Expert Systems with Applications, 34(4), 2693-2703.
• Suebsomran, A., Talabgeaw, S. (2013). Critical maintenance of thermal power plant using the combination of failure mode effect analysis and AHP approches. King Mongkut’s University of Technology North Bangkok International Journal of Applied Science and Technology, 3(3), 1-6.
• Tuncel, G., Alpan, G. (2010). Risk assessment and management for supply chain networks: a case study. Computers in industry, 61(3), 250-259.
• Vilko, J. P., Hallikas, J. M. (2012). Risk assessment in multimodal supply chains. International Journal of Production Economics, 140(2), 586-595.